German Index on Economy
Records a Two-Year High

By

Dagmar Aalund Staff Reporter of The Wall Street Journal

Updated Jan. 21, 2000 7:16 a.m. ET

FRANKFURT -- Germany's Ifo business climate index hit a two-year high in December, underscoring the upswing in the euro zone's largest economy and fueling expectations for higher euro-zone interest rates.

The headline business sentiment index for Western Germany, which makes up the bulk of the country's economy, rose to 99.6 in December from 98.9 in November, Germany's influential Ifo research institute reported Thursday. Although some analysts had forecast the index could rise as high as 100, the result was still seen as...